Four ways to cut IT costs in 2020
Since the start of the coronavirus pandemic, the UK economy has shrunk by over 20%. Business leaders everywhere are searching for new ways to cut costs and improve the value and efficiency of their day-to-day operations. Smith Bellerby offers four top tips for achieving this within your IT department.
27 November 2020
1. Cloud migration
Cloud migration offers a variety of benefits, including reduced data storage costs, lower real estate costs and improved data security. The ability to remove data centres and shift data storage to the public cloud has seen businesses make cost reductions of 45-50% in those areas.
However the major boon of cloud-based work in 2020 is the support it can lend to remote working. Given that 60% of the UK population is now working from home, the value of secure remote access to programs and mission-critical data cannot be overstated.
2. Automation and deep learning
Artificial intelligence will continue to grow in power and complexity over time. Largely thanks to deep learning innovations that allow AI evolution to progress without ongoing human input. According to research from Teknowlogy Group, that surveyed a 100 automation thought leaders, underperforming operations were the primary target of automation efforts last year.
One example of the success of automation was Rolls Royce in 2019. Using process automation, the company’s treasury function was able to reduce the monthly closing time from several days to several seconds.
3. Invest in people
Recognising the value of both in-house team members and the community that surrounds your business can provide significant savings in the future. On average, training and recruiting new staff members – especially in technical roles –
is far more expensive than retaining existing staff. As of October 2020, the average entry-level IT technician was being paid £18k annually. The Society for Human Resource Management has estimated that the hiring costs of a new employee regularly equals approximately 6-9 months worth of their salary.
Considering this information, investing in employee satisfaction is not simply a morale boost but a financial necessity for businesses looking to spend effectively.
Another tactic is to engage with local colleges and universities and build relationships with current students or alumni who will be seeking the roles you may need to fill in the future. A pre-emptive investment like this can save on recruitment costs further down the line.
4. Consolidate billing and invoicing
Organisations that operate across multiple sites are likely to waste a lot of time on billing and invoice validation each month. Such inefficiency is just a natural consequence of having complex utility and telecoms needs with varying consumption patterns. Depending on the metering support within your sites, you may be overcharged across multiple channels solely because of a lack of data.
Consolidating this process will reduce the time spent on invoice creation and metering each month as well as empowering you with greater visibility of your existing telecoms inventory and the attached expenses. Since IT operations are responsible for a large portion of energy use, folding their billing process in with telecoms will simplify dealing with both.
At Smith Bellerby, we have over 20 years’ experience in billing validation and have saved our clients over £7 million with our cost reduction services. The expertise we offer ranges from validation to utility contract procurement and our experience sits within a variety of industry sectors. To find out how we can help you make savings on your IT costs this year, get in touch.